NatWest Group plc (NWG) AI Stock Analysis

NatWest Group plc is a banking and financial services organization based in Edinburgh, United Kingdom, with history dating back to 1727. The company employs 59,000 people and operates through Retail Banking, Commercial Banking, Private Banking, RBS International, and NatWest Markets. Retail Banking delivers current accounts, mortgages, personal loans, and digital banking solutions across the UK. Commercial Banking offers lending and treasury management to businesses of all sizes, while Private Banking delivers wealth management to high-net-worth clients. RBS International handles institutional and wholesale banking, and NatWest Markets provides investment banking and risk management products. The group is also exploring digital asset initiatives.

Between FY2020 and FY2025, revenue grew at a 5-year CAGR of 17.6%, expanding from $12.04B in FY2021 to $29.48B in FY2025. Annual net income increased over that period from $3.27B in FY2021 to $5.83B in FY2025, representing a net margin of 19.8%. Gross margin was 56.3% in FY2025, while operating margin was 26.1%. Over the trailing twelve months, revenue was $16.81B with a net profit margin of 37.7% and an operating margin of 53.0%. For the latest quarter ended June 30, 2026, quarterly revenue grew 14.5% year-over-year, and quarterly earnings grew 30.0%.

As of June 30, 2026, NatWest Group held $95.19B in cash and short-term investments against total debt of $76.19B, leaving net cash of $19.00B. Total assets stood at $745.37B and shareholders' equity was $43.76B, with a debt-to-equity ratio of 1.74 and a current ratio of 0.19. In FY2025, operating cash flow reached $7.07B and free cash flow was $5.79B. During FY2025, capital expenditures were $1.28B, share buybacks totaled $2.56B, and dividends paid were $2.38B, contributing to a 5-year share count change of -24.0%.

At a last close of $17.51, NatWest Group trades at a trailing P/E of 8.8x and a forward P/E of 8.5x, compared to medians of 12.1x and 10.8x, respectively, for its US-listed Financial Services peers. Its price-to-sales ratio is 4.1x, above the peer median of 3.2x, while its price-to-book ratio is 1.3x and PEG ratio is 1.47. Over the past year, the stock returned 27.3% compared to 16.8% for SPY. Over 5 years, NWG gained 267.0% compared to 83.0% for SPY.

NatWest Group pays a semiannual dividend with an annual forward payout of $0.94, representing a dividend yield of 5.39%. The payout ratio stands at 46.5%. The company has paid dividends for 9 consecutive years, and its 5-year annualized dividend growth rate is 23.7%. The last ex-dividend date was August 14, 2026.

Wall Street coverage includes 2 Strong Buy and 2 Buy ratings, with no Hold, Sell, or Strong Sell ratings. The mean price target is $21.91, representing upside of 25.1% over the last close of $17.51. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $18.12B and EPS of $1.92. NatWest beat EPS estimates in 3 of the last 4 quarters, and its next earnings date is October 30, 2026.

This page is an AI-written research summary of NatWest Group plc (NWG). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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